Cross linked polyethylene (XLPE) is a popular insulation material used for power cables, wires and other conductors owing to its excellent electrical insulation and durable mechanical properties. It offers high resistance to heat generated due to electric current along with outstanding resistance against chemicals, moisture and stress cracking. The growing applications of XLPE in oil & gas sector is driving the demand for cross linked polyethylene where it is used for insulation of power cables used in offshore drilling sites, oil refineries and natural gas pipelines.
The global cross linked polyethylene market is estimated to be valued at US$ 5720.74 Mn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The usage of XLPE in oil & gas applications is increasing mainly due to its excellent chemical and moisture resistance which makes it suitable for cables installed underwater or underground. As offshore and deepwater oil production is expected to grow significantly during the forecast period, the demand for power and control cables protected with XLPE is also projected to rise thereby driving the XLPE market. Furthermore, replacement of aging pipelines and upgradation of existing distribution network will further fuel the consumption of XLPE insulated cables. Recovering oil prices are encouraging investments in oil exploration, extraction and transportation infrastructure which bodes well for the cross linked polyethylene market over the coming years.
SWOT Analysis
Strength: Cross Linked Polyethylene has high density and outstanding impact resistance. It provides effective barrier for gases and moisture.
Weakness: XLPE requires specialized equipment for processing which increases costs. It has relatively low flexibility as compared to other polymers.
Opportunity: Growing demand for XLPE from power cable industry due to its excellent electrical insulation properties. Rising focus on replacement of aging power infrastructure will open new opportunities.
Threats: Availability of cheaper substitutes like PVC and HDPE poses threat to XLPE market. Stringent environmental regulations regarding plastic waste disposal can hamper the growth.
Key Takeaways
The global Cross Linked Polyethylene market size is expected to witness high growth. The global cross linked polyethylene market is estimated to be valued at US$ 5720.74 Mn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030.
Asia Pacific dominates the global market and is expected to grow at a highest CAGR during the forecast period. Rapid industrialization and urbanization in China and India driving the power cable demand.
Key players operating in the Cross Linked Polyethylene are AZUR DRONES SAS, Microdrones GmbH, Parrot Drones SAS, Aerialtronics, FLIR Systems, Inc, Flyability, Aria Insights, Delair, Autel Robotics, Kespry Inc, ideaForge, and others. The key players are focusing on new product launches and strategic partnerships to gain competitive edge in the market. For instance, in 2022, Kespry partnered with Trimble to provide enhanced drone based data collection solutions for various industrial applications.